Budget 2012: Re-reading the Hamlet

Two days later, Budget and Finance Bill have been dissected. Choice was between watching Raja Harishchandra and re-reading Hamlet. Raja Harishchandra was not only about someone truthful, it was silent. This left Hamlet.

And no, this isn't about taxation, being cruel only to be kind. As with every Budget, one should read between the lines.

For example, the Dinesh Trivedi affair must have been on FM's mind. "Alas! Poor Yorick. I knew him; a fellow of infinite jest, of most excellent fancy; he hath borne me on his back a thousand times; and now, how abhorred in my imagination it is! My gorge rises at it." Dada must have thought of Didi.Budget at ET:Budget 2012|Union Budget|Railway Budget|Budget News|Economic Survey of India "Frailty, thy name is woman!" Or was it, "The lady doth protest too much, methinks?"

Therefore, if TMC is on its way out, DMK and other potential allies (SP and BSP) must be cultivated. "Doubt thou the stars are fire; Doubt that the sun doth move; Doubt truth to be a liar; But never doubt I love." However, given their whims, other than getting TMC out, perhaps it is best to let things be.

"I say, we will have no more marriages: those that are married already, - all but one, - shall live; the rest shall keep as they are."

Too bad we only got 6.9% growth in 2011-12. The external world hasn't been kind. "The slings and arrows of outrageous fortunea¦ The heartache, and the thousand natural shocks, that flesh is heir to."

Global contagion has brought exchange and capital market volatility. "Contagion to this world: and do such bitter business." Other than that, there's hike in crude prices. "When sorrows come, they come not single spies, but in battalions."

However, there was Economic Survey a day earlier, with scope for optimism. It "gave you such a masterly report for art and exercise in your defence" and suggested recovery was happening. "Believe so much in him, that he is young, and with a larger tether may he walk, than may be given you." Thus, that young recovery will grow and we can hope for 7.6% growth in 2012-13.

That still leaves the fiscal deficit and track record of 5.9% in 2011-12. "And that our drift, look through our bad performance." We know, as fiscal consolidation goes, "Something is rotten in the state of Denmark." As for FRBM, "I did love you once." But for the moment, "Get thee to a nunnery." A fiscal deficit of 5.1% is good enough. At the time of revised estimates, or at the time of supplementary grants, "And how his audit stands who knows but heaven?"

Big-bang policy changes incorporated in the speech is a bad idea. FDI in multi-brand retail and financial sector Bills "hath abatements and delays as many as there are tongues, are hands, are accidents." For DTC and GST too, "weigh that convenience both of time and means".

Addressing former FM, "I heard thee speak me a speech once, but it was never acted." Thus, no big bang. "Nor do not saw the air too much with your hand, thus, but use all gently. Be not too tame neither, but let your own discretion be your tutor." However, let's have a very long speech, so that everyone goes "to sleep, perchance to dream".

That way, any retrospective tax stuff buried in Finance Bill won't be noticed. Best of all, let's have an alphabet soup of schemes and for each, "Give him this money and these notes." An example is Green Revolution in East India. That part "hath much land and fertile". At one point, there was talk of making public expenditure more efficient. But "it is a custom more honoured in the breach than in the observance".

The exception is subsidies. The world knows, "That would not let me sleep." It gave me nightmares. Fertiliser subsidies are easier. The Budget "gives him three score thousand crowns in annual fee" ( 60,000 crore, say). On both food and petroleum products, "For on his (read Mrs Gandhi) choice depends the safety and health of this whole state, and therefore must his (read mine) choice be circumscribed." PM spoke of biting the bullet. He forgot.

There is no "bullet" in Hamlet. You will find it in Much Ado about Nothing. "Shall quips and sentences and paper bullets of the brain awe a man from the career of his humour."

With deficits and expenditure known, what are the options? The "purse is empty already" and the fiscal principle is unassailable. "Neither a borrower nor a lender be, for loan oft loses both itself and friend, and borrowing dulleth the edge of husbandry." There is disinvestment and other non-tax revenue. "I saw him (PSUs) enter such a house of sale." But let's accept the left hand will have to buy from the right, even though, "To pay ourselves what to ourselves is debt." On taxes, we should "reform it altogether".

But DTC and GST are stuck. There is nothing much to do on direct taxes. "From what advancement may I hope from thee (direct taxes) that no revenue hast." On indirect taxes (other than services), industry has lobbied in North Block a lot. "You know sometimes he walks four hours together in this lobby." Give concessions on customs, gold say. "Here's metal more attractive."

But hit on excise and services. Because of inclusion, industry will think, "How smart a lash that speech doth give my conscience." And so, "This business is well ended."